Swisscargo plans to concentrate its freighter services at its hub in Basel, starting July 6, shifting service from Geneva. Swisscargo expects the change to yield better use of a wet-leased DC-10-30F aircraft and an opportunity to offer additional routes. Starting this week, the SAirGroup subsidiary will operate an additional DC-10F freighter aircraft, increasing its freighter fleet to three. Staff reductions at Geneva will be "minimal," with a corresponding increase at Basel.
Standard&Poor's lowered ratings for Japan Airlines, All Nippon Airways and Japan Air System, reflecting concerns over an increasingly competitive aviation environment in Japan, limited actions by the carriers in response and weak financial prospects for the coming years. S&P lowered JAL's long- term rating to double B+ from triple B+ and its short-term rating to B from A2. It removed all ratings from CreditWatch, where they were placed March 13, and the outlook on the long-term rating is negative.
Several carriers are considering eliminating advance boarding passes in view of FAA's heightened airport security requirements. American and American Eagle said this week they will issue boarding passes only on the day of departure, effective June 1, but will continue to offer seat reservations at the time of booking. Boarding passes will be issued up to six hours prior to travel.
Inmarsat's member governments have agreed to amend the pact governing the organization in what representatives termed a "significant step" toward Inmarsat becoming a private company early next year. The Inmarsat Assembly of Parties, meeting this week in London, approved amendments proposed by the Inmarsat Council and the Intersessional Working Group, which was formed to develop the privatization model.
FAA Administrator Jane Garvey is the sole witness scheduled to testify today before the Senate Commerce aviation subcommittee at 2 p.m. in Room 253 Russell on Airport Improvement Program reauthorization and National Civil Aviation Review Commission legislation. This morning, the House Transportation aviation subcommittee will hear DOT Assistant Secretary Charles Hunnicutt, Deputy Assistant Attorney General John Nannes and officials from American, Northwest, Delta and United on international agreements, DOT actions and competition issues.
Latin America has a requirement for 700 new aircraft valued at $37 billion during the next 10 years, John Hayhurst, Boeing's VP-Sales, Americas, said this week at the International Airline CEO conference. Predicting that 85% of the new aircraft will be narrowbodies, Hayhurst said Boeing expects the region to grow 8.5% annually through 2007. Boeing's annual global market forecast is due in June, and Hayhurst said "Latin American economic growth and financial stability will continue to improve."
Swissair is considering a cross-ownership deal with AOM in which it would acquire 20% of the French airline, Swissair Director General Geoffrey Katz said Tuesday in Paris. Katz was inaugurating a Paris Orly-Zurich route, which AOM operates under a code-share agreement with Swissair. AOM is owned by Consortium de Realisation, a subsidiary of Credit Lyonnais, and is among assets that the troubled French state-owned bank intends to sell off.
Delta is offering introductory fares to Lima, Peru, starting at $468 roundtrip from Atlanta. Tickets are available through May 7 for travel originating between July 1, when Delta inaugurates the service, and Sept. 30.
FAA will begin construction in June to replace instrument landing system facilities on runways 6 and 24 at Bradley Airport, Windsor Locks, Conn., state officials announced.
TWA has decided to join the LatinPass frequent flyer program, just weeks after the airline unveiled Aviators, its own newly revamped program. LatinPass includes 11 Latin American carriers, KLM and US Airways. TWA has given no firm date for the start of its participation.
Cargolux multiplied its profits by four last year to $30.7 million. Heiner Wilkens, chairman of the Luxembourg-based all-freight airline, attributed the results to a "very strong international market" and low fuel prices. Cargolux's turnover jumped to $477 million last year, up from $396 million in 1996, and the company carried 273,696 metric tons with a load factor of 93%. The company said it averaged 15.2 hours of operations per day for its five 747-400 freighters and 14 hours for its three 747-200s.
DOT granted Lufthansa's request for a slot exemption at Chicago O'Hare Airport to operate an additional daily arrival from Frankfurt during slot- controlled hours. In its order DOT emphasized that it decides exemption requests "on a case-by-case basis," and petitioning DOT is not a "substitute mechanism for the slot-allocation procedures." Lufthansa followed those procedures, and FAA allocated Lufthansa four slots - two for combination service and two for all-cargo service - for the 1998 summer season, as it had for 1997.
CFM International and Boeing have reached an agreement under which CFMI will distribute CFM56-7 medium turbofan maintenance documents through Boeing's On-Line Data, or BOLD, system. Digitized versions of the engine manual, illustrated parts catalog and service bulletins for the CFM56-7, which powers next-generation Boeing 737 series aircraft, will be available this year. Forty customers have ordered 866 next-generation 737s.
Frank Colson, associate director of civil aviation, U.S. Air Force, and executive director, Defense Department Policy Board on Federal Aviation, will retire, DOD announced. Neil Planzer, director of the Air Traffic System Requirements Service at FAA, will succeed him.
Air Europe Italy leased two 777-200s from International Lease Finance Corp. The aircraft, powered by Pratt&Whitney engines, will be delivered in July and October 1999. Air Europe currently leases four 767-300s from ILFC.
Pan Am is expected to announce a new buyer today. The investor is a non-aviation-related firm that is expected to settle outstanding claims and put fresh capital into the carrier. The firm is not among those speculated about previously, The DAILY has learned. Pan Am is expected to announce a new buyer today
KLM sold its 25.5% stake yesterday in Royal Frans Maas Group, a small Dutch logistics company, following a failed 10-year effort to establish a strategic partnership with it. The sale, involving 1.34 million shares, will yield a book profit exceeding 47 million guilders (US$23.3 million), the carrier said. KLM's decision to withdraw stems from its Focus 2000 program to evaluate and, if necessary, sell off its participation in non- strategic holdings. The carrier bought the shares in hopes of establishing synergies between the partners' cargo activities.
Airlines are spending $1.6 billion to adapt their computer systems to the year 2000, according to IATA, and the association said yesterday it has launched a worldwide initiative to help air traffic systems, airports and other key suppliers minimize Year 2000 computer problems. IATA, working with the U.S. Air Transport Association, the International Civil Aviation Organization and Airports Council International, said it has developed a methodology to make an inventory of systems that may not be Year 2000- compliant. It also will monitor remedial actions.
Kitty Hawk, in the first full quarter following its merger with American International, reported a consolidated net loss of $1.7 million compared with a net loss of $12.2 million during the same quarter last year. Consolidated revenues were $147.4 million, up 23%, most of it from the company's air freight business. The company said it historically has experienced its lowest revenues and profits during the first quarter.
International Aero Engines was selected to supply V2500 engines to three Latin American airlines, Grupo Taca, LanChile and TAM Brazil, in an order valued at as much as $2.3 billion. The engines will power 88 firm-order and 87 option A319 and A320 aircraft from Airbus Industrie.
Hong Kong and the United Arab Emirates signed an aviation agreement this week, providing a framework for further development of aviation links. Stephen Ip, secretary for economic services for the Hong Kong Special Administrative Region, said Hong Kong-UAE is among the busiest of Hong Kong's routes. It is served by Cathay Pacific Airways, Air Hong Kong, Gulf Air and Emirates.
As part of a campaign to benefit The Children's Hospital of Philadelphia, British Airways will offer the first 50 customers in line at the check-in desk at Philadelphia International Airport on May 5 at 10 a.m. the chance to fly roundtrip to London for a fare based on their weight. Travelers will be weighed on BA's baggage scales and pay their weight in dollars on the spot, using check, cash or credit card. They will receive a certificate redeemable for roundtrip economy class tickets for travel between Nov.
Rep. William Lipinski (D-Ill.), ranking member of the House Transportation aviation subcommittee, introduced a bill yesterday that would require congressional approval of aviation bilateral agreements. Under current practice, the agreements are negotiated by DOT and State Department officials and adopted without congressional action.
The Environmental Protection Agency will issue new environmental requirements "that will force another replacement cycle" for U.S. airlines, Julius Maldutis, managing director of Salomon Smith Barney, said this week in Orlando. Airlines likely will be given 15 years to comply with the carbon dioxide and nitrogen oxides emission reduction standards for jet engines, he said.
American Trans Air said it has signed a letter of intent to acquire five L- 1011-500s plus engines and spares from Royal Jordanian. Ken Wolff, chief financial officer, said the aircraft "will provide the long-range, widebody aircraft that our customers have been requesting.
